Deutsche Bank Starts Ligand Pharma (LGND) at Buy

Deutsche Bank initiated coverage on Ligand Pharma (NASDAQ: LGND) with a Buy rating and a price target of $74.00. Analyst Gregg Gilbert noted its diverse and growing revenue streams.

"We view Ligand as an increasingly attractive cash flow story based on strong revenue growth coupled with significant operating leverage and a low tax rate. The company's diverse revenue base and extensive pipeline of owned and partnered products create a relatively unique investment opportunity within pharma/biotech, in our view. While business development remains a strategic priority, we expect the company to consider other routes of shareholder return as cash continues to accumulate. With ~$190mn of cash on hand post the recent convert offering, we would be disappointed if management did not deploy a significant portion in the next 6-12 months," said Gilbert.

For an analyst ratings summary and ratings history on Ligand Pharma click here. For more ratings news on Ligand Pharma click here.

Shares of Ligand Pharma closed at $53.85 yesterday.

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